SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : FORE Inc. -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (9955)12/16/1998 1:44:00 PM
From: OrionX  Read Replies (1) | Respond to of 12559
 
...You can't reach any conclusion based upon what the option action is.

You're correct but I would argue that person, if they were short, could have hedged with lower priced call options. Given the rather strong rise in the last two days, I would venture the options were not a hedge but otherwise.



To: ahhaha who wrote (9955)12/16/1998 7:42:00 PM
From: Tavros  Read Replies (2) | Respond to of 12559
 
Think about it. You sell in the cash market (to take your losses this year), and replicate your position with call option (just in case the stock runs up, as it did today. Makes sense right? And some of the option premiums, particularly for the in-the-money options (say, 10 or 15 dollars, 1 year or more out, are very, very cheap).

Regards Tavros
(for those who are a bit more involved in the esoterica of options)


HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News